Gozitan Lidl will gobble up €5 million in trade from surrounding stores

A retail impact assessment recommending the approval for a Lidl supermarket in Xewkija, Gozo, is anticipating a €1.81 million diversion in trade from convenience stores selling foodstuffs in Rabat, and another €3.17 million diversion from convenience stores elsewhere in Gozo.

A decision on the controversial supermarket which is partially sited in an outside development zone next to the ecologically sensitive Wied Zejta valley, is expected next Tuesday - just three weeks before the general elections.

According to the retail impact assessment, the new Lidl would bring about a likely reduction in the turnover of convenience goods stores in the primary town centre of around of 5.8%. Turnover outside the town centre was expected to see a 2.5% reduction.

These reductions occur as a result of trade diversion outstripping the forecast growth in convenience goods' expenditure.

On the other hand the study concludes that trade in non-food items, or comparison goods, will continue to increase, despite the opening of the Lidl supermarket.

Overall, the majority of these comparison goods is expected to be drawn to Lidl from the primary town centre (€590,000), whilst a smaller €250,000 amount is forecast to be drawn from comparison goods stores outside the town centre and elsewhere on Gozo.

Notwithstanding the opening of the Lidl store, Rabat is expected to experience a 4.8% increase in trade over the period to 2015, whilst stores outside the town will experience an increase in trade of 5.3%. This is because the forecast growth in comparison goods' expenditure over that period exceeds the "relatively small amounts" of trade diversion that will arise from the opening of the Lidl store.

The report also claims that the Lidl supermarket can create spin-off benefits for the town centre, offsetting any direct impact felt by existing trades - namely, that a number of Gozitans currently travelling to Malta to carry out their food shopping would be more likely to shop from Gozo.

The study also says the Lidl supermarket will fill the gap which exists for a large discount supermarket on Gozo. "The island does not currently benefit from such a store, and the store would therefore add to the diversity and range of food shopping provision on the island."

Moreover, as convenience goods facilities in the town centre represent just 15% of the total retail floor-space of the centre, "it is clear the vast majority of retail floor-space in the town centre will remain largely unaffected."

The study concludes that existing comparison goods retailers, which make up 85% of floor-space, will continue to experience significant growth, whilst convenience goods traders will be able to withstand "relatively small diversions of trade".

The retail impact study was conducted by London's WYG Planning and Design and consultancy firm EMCS. All large supermarkets are subject to retail impact studies, as per MEPA policy.

The original case officer report recommending the approval of the supermarket stated  that the assessment was not required, because the supermarket was deemed not to have a large-scale impact on the Rabat town centre. But it was following a public hearing that MEPA's Environment Planning Commission imposed this requirement.

Traffic impact

One of the objections against the project is related to its traffic impact.

Original plans showed trailers entering the site from St Leonard Street, which links Victoria to Xaghra and Nadur, while cars will enter from the side of an existing petrol station in Mgarr road.

During a public hearing in June 2012 it was brought to the board's attention that it was practically impossible for trailers to enter the site. Residents who spoke to this newspaper claimed that the existing parking spaces make it difficult for trailers to manoeuvre, and that this could create a danger spot for drivers entering and leaving.

The large refrigerated trucks transporting supplies to the German supermarket chain might also not be able to manoeuvre inside the site, creating further problems.

Case officer recommends approval

A decision on the project is now expected on Tuesday.

Back in June 2012 the decision was postponed after MEPA's Environmental Planning Commission ordered the project's architect to submit an updated Fire Safety and Ventilation report, an updated Construction Management report and clearance from Transport Malta, and a  Retail  Impact  Assessment,  following  the  provision  of  the terms of reference provided by MEPA's Forward Planning Unit.

A MEPA spokesperson confirmed that all these documents have been submitted.

The case officer is advising MEPA to approve the first Lidl supermarket in Gozo, which would be located at the edge of the Xewkija industrial estate.

The 4,813 square metre development is earmarked for a large vacant plot at the back of an existing petrol station on Mgarr Road.

Environmentalists have objected to the development because 30% of the site lies outside development scheme.

But the case officer states that the supermarket and the car park are now entirely located within development zones.

In the original application most of the supermarket's parking area had been located outside the limits to development, leading to MEPA informing Lidl that the project was "unacceptable in principle".

During a public hearing in June, environmentalist Astrid Vella and Green Party deputy chairperson Carmel Cacopardo raised objections to the development, saying it would affect a natural storm-water culvert nearby.

The supermarket structure will now include two overlying levels of parking, with the first floor level catering for 52 parking spaces and the roof of the structure, catering for another 58 car parking spaces.

The remaining area in front and on the side of the supermarket structure, which falls within the development zone boundaries, is to be used as an external parking area providing 24 car parking spaces.

The height of the supermarket structure is set at two floors with a maximum height of 12 metres.

The site of the proposed supermarket included a number of illegalities consisting of  "derelict vehicles and other scrap" and an illegal access road located on private land. The applicant was informed that unless these illegalities were removed the application could not be processed with a positive recommendation. The illegalities were only removed in February 2012, and the enforcement case was closed.

MEPA's policy guidance on retail outlets states that supermarkets should be preferably located in or on the edge of town centres, which is not the case in the Gozo applications.

MEPA has already issued permits for Lidl supermarkets in San Gwann, Santa Venera, Safi, Luqa and Ghaxaq. The Safi and Luqa supermarkets were located in ODZ areas, permits that were found to have been irregular in the opinion of MEPA audit officer Joe Falzon.

While processing the application for Gozo's Lidl supermarket, MEPA received a number of objections from environmental NGOs including Nature Trust, Malta Organic Agriculture Movement, the Ramblers' Association, Flimkien Ghall-Ambjent Ahjar and Din l-Art Helwa.

But MEPA also received four letters from Gozitans urging MEPA to approve the development, who claimed that MEPA should bear in mind the hardships that Gozitans have to endure when regularly crossing over to the mainland to shop at Lidl for its discounted prices.